R&D Tax Credits - Why Are So Few Engineering Companies Claiming?

R&D tax credits allow Irish companies to claim back up to 25 cents for every €1 spent on R&D.  In most cases this can be claimed back as cash.

According to Revenue’s latest R&D tax statistics there were only 464 manufacturing claimants in 2017. This is despite estimates that most engineering firms in Ireland would most likely qualify to claim back this cash incentive from Revenue.  With average claim values in the tens of thousands, Irish engineering companies missing out. You can use this handy calculator to discover the potential value of your claim.

R&D Tax Credits - So why are so few engineering companies claiming?

This is because most firms are unaware that they qualify or believe the claim process is to complex. 

Below are some common examples of projects within engineering and manufacturing that can qualify for R&D tax credits: 

• Developing new or improving existing products or processes;
• Designing, prototyping and trialling;
• Tooling and equipment fixture design and development.& much more (full list: https://www.myriadassociates.ie/services/rd-tax-credits/manufacturing-and-engineering/)

If you are unsure whether you qualify, most R&D Tax Credits specialists, like Myriad Associates, will happily provide advice on your company’s suitability for R&D tax credits.

R&D Tax Credits – How to Claim in Ireland

One option is to make an R&D tax claim yourself, however it is highly unlikely you will claim your full entitlement. Typically, money is left on the table because qualifying R&D activities and eligible costs are missed.

A better option is to use a R&D tax credit specialist that has a team of technical experts and R&D tax professional.  They will ensure that you claim your full entitlement whilst minimising risk.

This is where Myriad Associates would be able to assist. All that is needed is 2-3 hours of time to submit the claim from start to finish. As a rule, Myriad Associates typically submit claims that are 3X higher than in-house generated claims or those prepared by general accountancy practices.

Myriad Associates have 100% success rate in this area, for over 18 years and without exception. From start-ups to larger enterprises, Myriad has assisted many SME and large engineering companies with their claims.

If you are looking to maximise your R&D tax credit, contact Myriad Associates today.